Question

‘DF Telecom Ltd.’, which produces a range of mobile phones for the Indian market, set a target to produce 30,000 units of mobile phones in the month of December 2025. This was the benchmark against which actual performance would be measured. At the end of the month, it was found that only 27,000 units were produced.
Concerned with the shortfall, the General Manager asked the Production Manager to find out and resolve the problem.
State the steps related to the process of one of the functions of management which the Production Manager has to take to find out and resolve the problem.

Hint:

Controlling is the only function that looks back at past performance to correct future actions.

Answer 1

Step 1: Understanding the Concept:
The situation describes a shortfall in production (30,000 vs 27,000), which falls under the Controlling function of management.
Step 2: Detailed Explanation:
The manager has already performed "Measuring actual performance" and "Comparing performance with standards." The next steps are:
1. Analyzing Deviations: Determining why the shortfall occurred. This involves identifying if the deviation is within acceptable limits (Critical Point Control/Management by Exception).
2. Taking Corrective Action: If the deviations are significant, the manager must fix the problem (e.g., repairing machinery, additional training) to ensure future targets are met.
Step 3: Final Answer:
The steps are Analyzing Deviations and Taking Corrective Action.